Business Viewpoint: No sloppy management of discontinued companies

On December 27, 2003, three workers in a waste products market in Leshan City, Sichuan Province, were poisoned when cutting old chlorine gas cylinders, leading to a serious incident. In October 2004, the Yibin Public Security Bureau discovered 12 used and corroded chlorine cylinders at a waste collection site in Yibin City. More recently, in March of this year, a chlorine leak occurred in a county in Anhui Province. The situation was handled properly by the fire department and safety authorities. The source of the leak was traced back to a recovered used chlorine cylinder. In recent months, there have been multiple poisoning incidents and safety accidents caused by the misuse of discarded chemical containers that have entered waste collection stations. These incidents are closely linked to the lack of oversight after some companies ceased operations. As market competition intensifies and industrial structures are adjusted, many small-scale, outdated, and unprofitable enterprises are forced to shut down. For these companies, both the management and the relevant government departments often focus on short-term solutions—such as capital introduction, production conversion, and personnel placement—which can be very challenging. As a result, the management of these closed-down companies is frequently neglected or even abandoned. This has led to situations where previously well-controlled chemical containers are now being treated as scrap metal and sold into the general market, posing significant risks. Unlike other industries, chemical companies operate under high-risk conditions involving toxic substances or high-pressure environments. When they are running normally, strict regulations and dedicated staff are in place. However, once production stops, government supervision ceases, and company staff often leave, leaving behind pipelines, equipment, and residual chemicals that remain hazardous. Additionally, the "software" of some chemical companies—such as their production licenses and certifications—can also end up in the wrong hands. For example, a company may lease its site and certification to others, allowing illegal producers to operate under the guise of legality. Even if the machinery remains the same, these companies might exploit preferential policies meant for legitimate businesses. This practice, known as "policy transfer," enables so-called "five small" enterprises—previously banned by the government—to access subsidies, undermining national industrial policies. The shutdown of enterprises is an inevitable part of a market economy, but the management of such companies should not be neglected simply because they are no longer operating. For chemical companies, proper storage of dangerous containers, tracking of equipment involved in hazardous activities, and the temporary holding of enterprise qualifications are all essential steps to prevent future disasters. Without continuous oversight, the risks associated with abandoned facilities and materials can lead to severe consequences for public safety.

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